H. B. 4479
(By Delegates Beane, Mahan,
Hutchins, H. White and Paxton)
[Introduced February 10, 2000; referred to the
Committee on Banking and Insurance then Finance.]
A BILL to amend and reenact sections two and three, article
twelve, chapter thirty-three of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, all
relating to authorizing the insurance commissioner to grant
provisional licensure to an applicant for an insurance
agent's license pending the applicant's appointment by a
Be it enacted by the Legislature of West Virginia:
That sections two and three, article twelve, chapter
thirty-three of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, be amended and reenacted, all to
read as follows:
ARTICLE 12. AGENTS, BROKERS, SOLICITORS AND EXCESS LINE.
For the protection of the people of West Virginia, the
commissioner shall not issue, renew or permit to exist any agent's, broker's or solicitor's license except to an individual
(a) Is eighteen years of age or more.
(b) Is a resident of West Virginia, except that a broker's
license shall be issued only to nonresidents, and except for
nonresident life and accident and sickness agents as provided in
section eight of this article.
Effective the first day of June, one thousand nine hundred
ninety-one, brokers' licenses shall cease to exist. Licensing of
nonresidents for property casualty will be made pursuant to
section eight-a of this article.
(c) Is, in the case of an agent applicant, appointed as
agent by a licensed insurer for the kind or kinds of insurance
for which application is made, subject to issuance of license,
or, in the case of a solicitor applicant, appointed as solicitor
by a licensed resident agent, subject to issuance of license,
except that on or after the first day of June, one thousand nine
hundred ninety, no solicitor's license will be issued which is
not a renewal of an existing license.
(d) Does not intend to use the license principally for the
purpose, in the case of life or accident and sickness insurance,
of procuring insurance on himself or herself, members of his or
her family or his or her relatives; or, as to insurance other
than life and accident and sickness, upon his or her property or insurable interests of those of his or her family or his or her
relatives or those of his or her employer, employees or firm, or
corporation in which he or she owns a substantial interest, or of
the employees of
such the firm or corporation, or on property or
insurable interests for which the applicant or any such relative,
employer, firm or corporation is the trustee, bailee or receiver.
For the purposes of this provision, a vendor's or lender's
interest in property sold or being sold under contract or which
is the security for any loan, shall not be deemed to constitute
property or an insurable interest of such the vendor or lender.
(e) Satisfies the commissioner that he or she is trustworthy
and competent. The commissioner may test the competency of an
applicant for a license under this section by examination. Each
examinee shall pay a twenty-five dollar examination fee for each
examination to the commissioner who shall deposit said
examination fee into the state treasury for the benefit of the
state fund, general revenue. The commissioner may, at his or her
discretion, designate an independent testing service to prepare
such the examination subject to direction and
approval by the commissioner, and examination fees charged by
such the service shall be paid by the applicant.
(f) For new agents first licensed on or after the first day
of July, one thousand nine hundred eighty-nine, completes a
program of insurance education as established below: Provided, That a written waiver from the insurance education requirements
for life, accident and sickness, or property and casualty
insurance may be granted to any person who can demonstrate to the
satisfaction of the commissioner that he or she has been licensed
as a resident agent in good standing in another state within the
sixty-day period immediately preceding his or her application for
a resident license in West Virginia. The waiver, if granted,
does not exempt the applicant from an examination pertaining to
the laws of this state for each kind of insurance for which
application is made.
There is hereby created the board of insurance agent
education. The board of insurance agent education shall consist
of the commissioner of insurance and six members appointed by the
commissioner. The members appointed by the commissioner shall be
two licensed property and casualty insurance agents, one licensed
life insurance agent, one licensed health and accident insurance
agent, one representative of a domestic insurance company, and
one representative of a foreign insurance company: Provided,
That no board shall be appointed that fails to include companies
or agents for companies representing at least two thirds of the
net written insurance premiums in the state. Each member shall
serve a term of three years and shall be eligible for
(1) The board of insurance agent education shall establish the criteria for a program of insurance education and submit the
proposal for the approval of the commissioner on or before the
thirty-first day of December of each year.
(2) The commissioner and the board, under standards
established by the board, may approve any course or program of
instruction developed or sponsored by an authorized insurer,
accredited college or university, agents association, insurance
trade association, or independent program of instruction that
presents the criteria and the number of hours that the board and
commissioner determine appropriate for the purpose of this
(g) The commissioner may issue a provisional license to any
agent applicant meeting the qualifications set forth in section
two of this article, but who has not been appointed as agent by
a licensed insurer.
(1) Notwithstanding other provisions of the code to the
contrary, an individual so licensed:
(A) May not solicit, negotiate, effect or countersign
insurance contracts or otherwise transact insurance;
(B) Is not subject to the continuing education requirements
set forth in section two-a of this article; and
(C) May hold the provisional license for a period of one
year from the date of issuance.
(2) A provisional license may be upgraded to an agent's license upon the appointment of the applicant as agent by a
licensed insurer subject to the same requirements for licensing
of agents in general.
(3) The commissioner may suspend, revoke or refuse to
upgrade a provisional license for any of the same causes and
pursuant to the same procedures as are applicable to suspension
or revocation of licenses of agents in general under article
twelve of this chapter.
(4) There shall be no fee for a provisional license.
(a) Application for an agent's, broker's or solicitor's
license or renewal thereof shall be made to the commissioner upon
a form prescribed by him or her and shall contain the applicant's
name, social security number and
such the information and
supporting documents as the commissioner may require, and the
commissioner may require such the application to be made under
the applicant's oath.
(b) If for an agent's license, other than for a provisional
license, the application shall show the kinds of insurance to be
transacted, and shall be accompanied by the written appointment
of the applicant as agent by at least one licensed insurer for
each kind of insurance for which application is made.
(c) If for a solicitor's license, the application shall be
accompanied by written appointment of the applicant as solicitor by a licensed agent.
(d) If for a broker's license, the application shall be
accompanied by a statement upon a form prescribed by the
commissioner as to the trustworthiness and competency of the
applicant, signed by at least three licensed resident agents of
(e) Willful misrepresentation of any fact in any
application or any documents in support thereof is a violation of
NOTE: The purpose of the bill is to provide for the issuance
of a provisional insurance agent's license to persons meeting all
qualifications for a license but pending appointment by a
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.